Final numbers for Moss Bros (MOSB) showed a fourth successive year of profit and revenue growth, with like-for-like sales up 5.5 per cent. The men's suit specialist is also powering ahead with a store re-fit programme in a bid to capitalise on a rebrand of its major product lines last autumn.
Management is putting faith - and a lot of money - into these store refurbishments. The launch of six new outlets and the refit of a further 14 accounted for much of the £8m of capital expenditure in 2014. That figure will increase to £14m this year as Moss Bros upgrades 27 stores and increases its investment in inventory within the hire division. This new hire stock, which includes a range of lounge suits, is already helping to buck business in the division this year after like-for-like sales fell by 3.6 per cent in 2014 - the second successive year of decline.
Meanwhile, revenues in both the retail and hire divisions were bolstered by e-commerce. Online sales grew by 59 per cent last year, and now account for 7.8 per cent of group turnover.
Analysts at Peel Hunt are forecasting adjusted pre-tax profits of £5.7m and EPS of 4.4p this year, rising to £6.7m and 5.2p in 2016-17.
| MOSS BROS (MOSB) | ||||
|---|---|---|---|---|
| ORD PRICE: | 108p | MARKET VALUE: | £109m | |
| TOUCH: | 107-108.5p | 12-MONTH HIGH: | 126p | LOW: 78p |
| DIVIDEND YIELD: | 4.9% | PE RATIO: | 27 | |
| NET ASSET VALUE: | 37p | NET CASH: | £20m | |
| Year to 31 Jan | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 88 | -8.9 | -7.5 | nil |
| 2012 | 101 | 0.9 | 1.6 | 0.4 |
| 2013 | 105 | 3.1 | 2.5 | 0.9 |
| 2014 | 109 | 4.4 | 3.8 | 5 |
| 2015* | 115 | 4.8 | 4.0 | 5.25 |
| % change | +5 | +9 | +7 | +5 |
Ex-div: 4 Jun Payment: 26 Jun *53 weeks to 31 Jan 2015 | ||||
